Call Us Today For A Free Quote | 866.940.1101
Professionals Insuring Professionals
 

 

Malpractice Insurance—Coverage for Sanctions

There is no coverage for sanctions or fines under a Professional Liability Insurance policy.  In most cases sanctions or fines would not be insurable anyway.   Sanctions and/or fines are meant to punish the individual and insurance policies are not meant to cover or make “whole” an individual that has committed these acts.

The Axis Lawyers Professional Liability Insurance policy excludes the sanctions or fines in the definition of damages:

"Damages means a monetary judgment or settlement. Damages does not include:

a.       fines or statutory penalties,  sanctions whether imposed  by  law or otherwise, or any  amount awarded or assessed against you in any claim;"

 

Again with all malpractice insurance, the wording and policy structure is not standard.  While the definition section of the policy is the most common place to find this exclusion, it is not the only place.

While there is no coverage for the sanction or fine, if there is a malpractice claim associated with the act that generated the sanction or fine, there may be at least defense costs for the malpractice claim if not coverage for an indemnity payment.   But whether there is coverage under the malpractice insurance policy for the malpractice claim will depend on the individual circumstances.

Note:  The above is general information about a Claims Made Insurance policy concept.  Different insurance policies and different situations may or may not treat these concepts in a similar manner.

Share |


No Comments


Post a Comment
Name
Required
E-Mail
Required (Not Displayed)
Comment
Required


All comments are moderated and stripped of HTML.
Submission Validation
Required
CAPTCHA
Change the CAPTCHA codeSpeak the CAPTCHA code
 
Enter the Validation Code from above.
NOTICE: This blog and website are made available by the publisher for educational and informational purposes only. It is not be used as a substitute for competent insurance, legal, or tax advice from a licensed professional in your state. By using this blog site you understand that there is no broker client relationship between you and the blog and website publisher.
Blog Archive


View Mobile Version
Quick Contact
Referrals
We love referrals! And thank you even more for your continued business.
Customer Service
Self policy service any time of the day, directly from our website.
Join Our Newsletter
Stay in touch with the latest events, news and offers we have.
From Our Blog From Our Customers
Read More Read More
Stay In Touch With Us Helpful Site Links Read the News
Sign up now to receive new and updates Stay up-to-date with the latest industry, community and agency news through our newscenter. We also provide handy hints on how to save on your insurance.

Read More
We have the expertise to find you the right coverage at the right price 
Powered by Insurance Website Builder